Circle the wagons, boys!

It isn't exactly "Breaking News" when I say that people get really touchy when you talk about getting into their wallets.  "It's MINE, I WORKED for it, you CAN'T have it!"  And this, IMO, is why our government today is so dysfunctional and our people are so upset.  One economic class feels they're paying for benefits that another economic class is receiving, and to be honest, it's largely true.  (Their elected political manipulators see this perpetual standoff as their job security.)

TAXES.  Just saying the word gets most people's blood pressure up.  The average middle class guy feels he's working 100 mph to pay for day care, to put braces on his kids teeth, to somehow pay another semester's tuition for his oldest to stay in college, to pay the deductibles and co-pays on his heath insurance, or if he's an "independent contractor", to pay for his family's health insurance that might cost more than his house payment, etc.  It's a struggle for sure.

Meanwhile, in his mind, another economic class gets free child care, food stamps, rent subsidies, college grants (that require no payback), free medical care (via Medicaid) and even a free cell phone, all paid for by HIM!  And then when you interject race into the equation, it really gets nasty!  To the average middle class taxpayer (statistically likely to be white) the average beneficiary of our social safety net is black or brown, and now includes immigrants, too, hence the animosity.  Facts to the contrary be damned!  He simply can't fathom his economic situation deteriorating to the point he might need some of those services himself some day.  These are benefits (he thinks) he'll never receive.

This is where he thinks his taxes are going.

At the other extreme, while he vaguely knows about the massive government subsidies going to the private sector ($37B to Big Oil, $270B to Big Pharma, $18B to Big Ag, $83B to Wall Street, etc) he can't put a face with a $$$$ to know who to direct his anger at.  (I know, I know, a preposition at the end.  Shoot me.  ;) 

This is why the idea of a tax increase to balance the budget, for example, is a non-starter.  "MORE money to give to those bums? Oh HELL no!"  

In their minds they, personally, aren't getting anything for their tax dollars (hello!...national defense, highways, etc?), with the exception of Medicare and Social Security.  Ahhh....don't you love it when a Tea Party supporter holds his sign up high that says "NO SOCIALISM IN AMERICA!!", then says, "but don't mess with my Medicare or Social Security."  *dude, those programs are the epitome of socialism!*  

As long as people don't feel like they are themselves getting anything for their tax dollars, they're going to resist.  Call them anything you want....selfish, greedy, uncompassionate....when you get into people's wallets, the battle lines will be drawn.  Let's just hope the rest of the world stays more f__ked up than us so they'll run over here with their $$$$ and finance our debt.

Just my thoughts. 

S

I did NOT see this coming!

I won't lie to you and say I haven't been expecting eventual trouble.  I have.  Maybe even a classic "revolution" some day.  It's just that my vision of a revolution was of crowds in the streets with torches, tossing Molotov cocktails, driving corrupt leaders to hastily board their fast jets and make a dash for whoever will give them political asylum, just like in the movies.  I expected it to abruptly just boil over, like a giant volcanic eruption.

Turns out we've likely been watching one for the past decade or so.  Think about it: Republicans were traditionally the party of the upper class, while the Democrats represented the working class.  

But by 2016 the establishment, exemplified by Wall Street, was hoping for a Democratic presidential victory, while the working class gave up on their former benefactors and elected a very un-Republican Donald Trump.  WTH just happened?

Even the 74-year-old self-described socialist Bernie Sanders came within a whisker of pulling off a miraculous upset.  The natives are restless!

A decade ago the right-wing Tea Party was born.  Their unofficial motto seemed (to me at least) to be, "I've got mine, F__K YOU!"

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With today's nationwide (worldwide?) Women's March, some say we're seeing the jelling of a new, left-wing Tea Party. 

Judging by the size of today's crowds, I wonder how many sitting Congressmen / Senators will decide to retire in 2018  and "spend more time with their families"?  *Start the car....START THE CAR!*  The mood is getting pretty nasty, folks.  Let's hope we can defuse it with signs and ballots vs bullets and fire bombs.

If we can, there might just be a silver lining to this growing mess.  *fingers crossed*

S

What if they gave a party and nobody came?

Since I have been such a highly accurate *snicker* political prognosticator so far this election year, I'll swing my bat once more and go for the home run....or will it be strike three?

So far I've predicted the Tea Party would run its course in due time as they were just a bunch of radical extremists (redundant?), but they're still here.  I failed to take into account the American people's ignorance / indifference / gullibility (choose one).

I predicted Donald Trump's ongoing reality TV show would eventually flame out, but it hasn't.  Oops.  I predicted Ted Cruz would be unmasked for the pure McCarthyesque pot-stirring opportunist he is.  Double oops.  The rest of the field hasn't made a move, and might not be able to in time.

I predicted Hillary Clinton was a shoe-in for the Democrats as her only competitor was a life-long avowed Socialist.  He's smoking her....didn't see that coming, either!

So what's next?  IMHO....

The Republicans will nominate The Donald.  His star power will be hard to overcome.  The conservative special interests will line up behind him as they will see him as "one of them", despite his protests *wink*.

The Democrats will nominate Hillary C.  I don't think Iowa or New Hampshire are representative of traditional Democratic voters....both states are ''too white".  When the primaries move to states with sizable numbers of minorities, Hillary should climb back on top.   *heehee...not going there*  She might come across as a poor man's champion, but Wall Street owns her lock, stock, and barrel.  She would sell her soul to be elected president, and they know it.

If Trump is elected, will he appoint good advisers, and will he LISTEN to them?  And if he wins, and the Republicans have control of the House AND the Senate AND the White House, will they govern like a bunch of drunk sailors on shore leave?

If Hillary is elected will her presidency be doomed from the get-go?  Let's face it....she's reviled by many, and considered untrustworthy by even more.

So it's a choice between being stuck between a rock and a hard place.  Saturday Night Live should have plenty of material to work with.  That might be the only good thing about this election year.

S

This is gonna get ugly

Look out Washington.  Here they come!

The Democrats and Republicans have been waging a battle of wills....some would say stubbornness....as they fight about budgets and debt ceiling limits and such. The newspapers and cable TV report it, and some of us bloggers write about it, but odds are it has touched very few people any of us might know personally, if any at all.  

That could change in a big way very soon.  It's said that if the government defaults on paying it's bills (as soon as later this month), Social Security recipients, disabled veterans, military retirees, and others might not be getting their monthly checks.  I don't think the politicians realize what they're letting themselves in for when they start playing pinata with a beehive of Gray Hairs.

It's one thing to heap scorn on a welfare recipient who won't work and lives off his gubment handout and food stamps, yet has a new smartphone, a bottle of hooch and a carton of cigarettes, and a body full of expensive tattoos.  "Get off your ass you bums and get a job!"

I dare you to go up to your elderly neighbor wearing his "WWII Veteran" ball cap, or your grandmother, and tell them to "get a job you bum" because they can't pay for their apartment or food or medicine because their meager savings can't cover the shortfall of them not getting their social security checks.  Or the disabled veteran who is missing limbs because he/she did their time protecting you so you could get your MBA and land that great job on Wall Street, get rich, and join the Tea Party (or any party).

The government checks these people get are NOT welfare.  They PRE-PAID for these benefits by working for decades, paying into a supplemental retirement system every payday of their lives.  Same with veterans, whose terms of employment stipulated that if they were injured on the job they would be cared for.  Unilaterally change their terms of employment and not pay them NOW?  REALLY?

I agree there are lots of worthless programs our government can and should cut to save a buck.  But it would take a pretty cold person who shares a special relationship with the devil to hit on the Gray Hairs.

S

It's official. The winner is.....

....actually it's a tie.  It seems the good folks, all 10 of them, in Dixville Notch, NH have split their votes 5 (Obama) to 5 (Romney).  Dixville Notch is famous for opening its polling place at midnight, becoming the first to report election results to the world.  What they need is one more person to move there, and assuming he's an eligible voter, insuring there will never be a tie again.  Until one of the others dies. *sigh...why is this always so complicated?*

Here's what I'm proposing to end the stalemate:  I'll offer myself up as President.  Actually "Dictator" might be more appropriate.

My agenda: 

First, I'd banish all professional politicians to France.  That would mean no more Congress.  Those 9% of you who still like Congress....get over it!  They're now France's problem.

Next I'd go to "Wall Street" (the term to include all the ivory-tower crooked financial types), round 'em all up, and banish them to France.

Telemarketers and those who load up my mailbox with junk mail will be banished to France.  (This means YOU credit card companies!)

Anyone who's mean to dogs....let's make that just mean people in general....will be banished to France.

Chefs who insist on putting "colorful vegetables" on the same plate with my steak....will be banished to France.

Football would become a year-round sport, playing in two shifts.  Each plays for six months, then takes six months off for knee surgeries and rehab while the other shift keeps us me entertained.  Anyone who objects will be banished to France.

Anyone driving an electric car will not have to pay taxes.  Not because I like electric cars, but because they're saving lots of gasoline....FOR ME!  They'll be allowed to vacation in France, but they won't have to.

Anyone not in construction or agriculture who owns a pickup truck will be banished to France.  Minivan owners are on thin ice, too.

And people who are in front of me at a traffic light, yapping and texting and not paying attention, who wake up just as the light turns yellow again, making me miss MY turn to go.....will be banished to France.

I think I'm gonna like this Dictator thing.

Feel free to petition me with those you'd like to see banished to France, too.  After all, I'm here to serve.  :)

S

The coming "Aporkalypse"

The news reported yesterday that within a year we might be facing a serious shortage of bacon.  I'm sure that would also include pork chops, ham and other assorted pig parts, but of most concern to me is bacon.  It seems the drought has caused pig farmers to thin their herds (?), which means by next year bacon might be scarce.

Doesn't it look good?  Yum!  I love it, but since I know it can't be that good for me, I eat it sparingly.

All this brings to mind the time years ago when I tried my luck in the pig farming bidness.  I had a trash-haul guy, Eddie, who owned some land in the country about 50 miles north of Dallas.  He was always looking for a way to make some extra money, and that included raising pigs, goats, cattle....anything legal....and maybe even a few things not legal.  I never asked.

One day he approached me offering a joint venture deal.  It worked like this:  I would give him $500 and he would buy some piglets.  Then he would take them to his property and feed them, and when they were "porky" enough, he'd sell them and we'd split 50-50.   Sure, why not.

Shockingly, after 4 months and 1 week I received a check payable to me from the Bonham (TX) livestock auction for $1,154.  That's about a 400% annual return.  WOW!  

He asked if I wanted to do it again, and I said absolutely!  My brother even wanted in this time.  I briefly thought about giving him $10,000, but I really didn't trust him that much.  His could have been a small-time Ponzi scheme for all I knew. I stuck with another $500.  

This time, however, it took 10 months before he handed me $900 cash for my $500 investment.  As I had already figured out that pigs grew fast, I deduced he sold our bacon months earlier and floated himself a loan.  Sneaky, but I still couldn't complain.

I've often thought maybe I should have stuck with it and applied to the Agriculture Department for a "Not-Raising-Pigs Subsidy".  I could have started by not raising a few dozen pigs, then a few hundred, and over time upped that to not raising several thousand a year.  (Isn't that how the government works?)  I could have been a pigless pig farming mogul by now!

Wonder why when Wall Street is on fire they call it a Bull Market?  Why not a Pork Market?  Seems to me that's where the big investment opportunity is.

S

Bidness History 101

Not that I expect anyone to actually read this....


Here's how our economy went over the cliff:  Historically banking was a fairly mundane business.  Banks paid depositors a small percentage interest, charged borrowers a higher rate of interest, and the gap in the middle was their profit.  They matched up those who had an excess of money (depositors) with those who needed money (borrowers).  It was called 3-6-3 banking...they paid depositors 3%, charged borrowers 6%, and were on the golf course by 3pm.  Every small town had their own bank and everyone knew the banker and the banker knew all the townspeople.  They knew who was a good credit risk and who wasn't.  They thought long term, hopeing to help you start and grow a business and become your banker for life.  Banking was NOT a "get rich quick" profession.


Occasionally they strayed and began bankrolling speculators in exchange for higher returns for themselves, but things usually ended badly.  (Think:  The Great Depression)  After that fiasco the government passed all kinds of new laws hopeing to prevent a recurrence, the big one being the Glass-Steagall Act.  It said commercial banks (the ones where you put your paycheck) were given FDIC protection, but were limited to the very mundane types of banking ONLY (see above).  Investment banks such as Goldman Sachs, Bear Stearns, etc were NOT given FDIC protection, but were allowed to gamble with their "investors" money with the hope of hitting a home run....higher risks, higher returns.  Brokerage firms could buy and sell securities, but could not do what commercial or investment banks could.  These firewalls kept our financial system out of serious trouble for the next 50 years.


With the wave of deregulation begun by Jimmy Carter and Ronald Reagan these various types of financial service companies began eyeing and envying the others.  The firewalls began to spring leaks.  Commercial banks wanted to be able to gamble like the investment banks hopeing for a home run for themselves.  The investment banks thought if they had the HUGE piles of depositor's money to play with like the commercial banks did they could before long own the world.  With individual investors, mutual funds, and pension funds, etc, seeing the potential for nice returns on Wall Street, the volume of stocks traded went from a few million to eventually several billion a day.  And remember, brokerages are paid by the number of shares traded, NOT whether the market goes up or down.  The banks wanted some of that, too.


Little by little they were allowed to stray a bit farther from their roots.  The small town banks were largely bought up by the regional "downtown" banks, who were in turn absorbed by the "money center" banks such as Citi and Bank of America.  Their power became enormous and they learned how to exchange "campaign contributions" for Washington favor.  Finally, in 1999, Congress passed the Gramm-Leach-Bliley Act which killed off Glass-Steagall.  The firewalls were removed.  Banking became a highly desirable "get-rich-quick" profession.  Banks became less focused on helping their neighbors establish and grow businesses and more focused on devising new products to sell (such as "derivatives") which could generate almost unimaginable profits for their stockholders and immense commissions for themselves.  There was little reason to make "prudent" loans (well, they had to look prudent at least long enough to sell them) as the risk was passed on to those who eventually bought these new financial products.  


Greed ruled.  And then the wheels came off.  Some other time I'll explain what happened next.


S


NOTE:  I would welcome any feedback correcting this post if I have gotten something wrong.  Factual constructive criticism would be appreciated.

It's already starting

Civil unrest.  Like many, I've predicted that next spring we could be seeing massive protests all across the country.  Protests by the unemployed, the underemployed, the currently-employed-but-worried-about-tomorrow.  Protests by those cynics who think our government is broken, and our elected civil servants corrupt.  From the Tea Partyers to the Union members, there are a lot of them, and I think they have some very valid complaints.


But my timing was off.  It's starting now.  The relatively small number of rowdies who are protesting Wall Street and the banks have now spread to other cities and financial districts, and they're gaining respectability.  (There was a march here today on the Federal Reserve Bank in Dallas.)  Now there's word that protesters are mobilizing on college campuses (anything to get out of class  ;) upset about increases in tuition and cuts in classes, all while their administrators are pulling down very handsome paychecks.


And of course the Greeks are rioting.  They're now saying a Greek government default is inevitable, and if so, Italy and Spain and Portugal might be close behind.  Will a financial earthquake in Europe lead to a tsunami here?


Frankly, in a perverse way, I welcome all this.  I'm hoping that by next year, an ELECTION YEAR, there will be a mass exodus of incumbent politicians of both parties wanting to get out of Dodge before the crowd gets really rough.  Think of it as the "Ultimate Spring Cleaning".


This could be historic!  


S

Where's FEMA??

So there's an earthquake in Washington, DC, and Wall Street responds by going UP 322 points.  Maybe I'm reading too much into this, but it almost looks like....  :)


S